NEW YORK--(BUSINESS WIRE)--May 31, 2022--
Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company with significant expertise in livestream shopping on TV and online, and WHP Global (“WHP”), a leading global brand management firm, today announced that WHP will purchase a controlling 70% interest in fashion brand Isaac Mizrahi.
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The transaction, valued at $68 million, includes $46.2 million in cash proceeds to Xcel, which will retain a 30% minority interest in the Isaac Mizrahi brand. Under the terms of a services agreement with WHP Global, Xcel will continue to manage the QVC business with WHP Global and has entered into a new license agreement to design and distribute Isaac Mizrahi apparel in the US and Canada.
Isaac Mizrahi is an iconic fashion brand that celebrates timeless, cosmopolitan style. Isaac Mizrahi, the American designer, launched his eponymous label in 1987 to critical acclaim, later earning four CFDA awards from the Council of Fashion Designers of America. Isaac’s designs have been seen on influential women such as Michelle Obama, Oprah Winfrey, Audrey Hepburn, Meryl Streep, Rihanna, Julia Roberts, Anne Hathaway, Kate Hudson, Selma Blair, Naomi Campbell, Kate Moss and Carla Bruni. The Isaac Mizrahi brand has generated more than $1 billion in retail sales since its founding and today is among the top fashion brands on QVC.
“The Isaac Mizrahi business has grown for 12 years straight under Xcel’s stewardship and we’re pleased to now partner with WHP to continue the brand’s global momentum,” said Robert W. D’Loren, Chairman and Chief Executive Officer of Xcel Brands. “Selling a majority interest in the Isaac Mizrahi brand is a transformative moment in Xcel’s history and represents the first time we have monetized one of our brands since Xcel was founded in 2011. Xcel is now debt-free, with over $17 million in cash and $22 million of working capital on our balance sheet, which will help fuel a number of our upcoming strategic initiatives as we concentrate our resources on growing our brands, new brand launches and investing in livestreaming technology platforms and partnerships.”
Isaac Mizrahi, who will continue to serve as Chief Design Officer of his namesake brand, said, “I’m very excited to harness the power of my brand. I couldn’t ask for better partners.”
With the addition of Isaac Mizrahi, WHP Global owns and manages over $4.2 billion in retail sales across its portfolio of brands, making it one of the largest and fastest-growing brand management firms in the world.
Yehuda Shmidman, Chairman and Chief Executive Officer at WHP Global, stated, “We are excited to partner with Isaac and Xcel as we work together to architect and orchestrate the next phase of growth for the Isaac Mizrahi fashion house. We see meaningful opportunities to expand the brand by leveraging WHP Global’s platform and the reach of our fashion vertical, which now includes Anne Klein, Joseph Abboud, Joe’s Jeans, William Rast and Isaac Mizrahi.”
The Isaac Mizrahi brand features a variety of product categories, including sportswear, footwear, handbags, watches, eyewear, tech accessories, home and other merchandise. The brand is available across various distribution channels, including better department stores such as Saks Fifth Avenue and Hudson’s Bay; interactive television, including QVC and The Shopping Channel; national specialty retailers; and internationally in Canada, Italy, the United Kingdom and Japan.
Xcel Brands Conference Call and Webcast
Xcel Brands will host a conference call with members of its executive management team to discuss details of this transaction at 4:30 p.m. ET on May 31, 2022. A webcast of the conference call will be available live on the Investor Relations section of Xcel’s website at www.xcelbrands.com. Interested parties unable to access the conference call via the webcast may dial 877-407-3982. A replay of the conference call will be available until June 14, 2022, and can be accessed at 844-512-2921 using the replay pin number 13730344.
About WHP Global
WHP Global is a leading New York based firm that acquires global consumer brands and invests in high-growth distribution channels including digital commerce platforms and global expansion. WHP owns ANNE KLEIN®, JOSEPH ABBOUD®, JOE’S JEANS®, WILLIAM RAST®, LOTTO®, TOYS"R"US®, and BABIES"R"US®, as well as a controlling interest in the ISAAC MIZRAHI® brand. Collectively the brands generate over $4.2 billion in global retail sales. The company also owns WHP+, a turnkey direct to consumer digital e-commerce platform for brands, with full in-house operations including technology, data analytics, logistics, creative and digital marketing and WHP SOLUTIONS, a sourcing agency based in Asia. For more information, please visit www.whp-global.com.
About Xcel Brands
Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, production, marketing, livestreaming, wholesale distribution and direct-to-consumer sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment and social media as one thing. Xcel owns the Judith Ripka, Halston, LOGO by Lori Goldstein, and C. Wonder brands and a minority stake in the Isaac Mizrahi brand. It also owns and manages the Longaberger brand through its controlling interest in Longaberger Licensing LLC. Xcel is pioneering a true omni-channel sales strategy that includes the promotion and sale of products under its brands through interactive television, digital livestream shopping, brick-and-mortar retail and e-commerce channels. The company’s brands have generated in excess of $3 billion in retail sales via livestreaming in interactive television and digital channels alone.
Headquartered in New York City, Xcel Brands is led by an executive team with significant livestreaming, production, merchandising, design, marketing, retailing and licensing experience and has a proven track record of success in elevating branded consumer products companies. With an experienced team of professionals focused on design, production and digital marketing, Xcel maintains control of product quality and promotion across all of its product categories and distribution channels. Xcel differentiates by design. www.xcelbrands.com
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Source: Xcel Brands, Inc. and WHP Global